Privacy And Innovation Are Not Mutually Exclusive

The personal information economy can be a win-win situation for everyone, according to delegates of the Personal Information Economy 2016 conference organised by consultancy Ctrl-Shift in London.

Data protection and privacy are often seen as barriers to business growth. Companies want to use customer data to build new products and services, but people are reluctant to share that data. The key to breaking this deadlock is trust.

That was the key message from the recent Personal Information Economy 2016 conference organised by consultancy Ctrl-Shift in London.

“I don’t believe data protection is standing in the way of your success,” the U.K. information commissioner Elizabeth Denham told delegates. “It’s not privacy or innovation—it’s privacy and innovation. The personal information economy can be a win-win situation for everyone. Get it right, and consumers and businesses benefit. Consumer trust is essential in driving growth.”

This idea was also articulated by Stephen Deadman, global deputy chief privacy officer at Facebook.

“The debate about data is framed as a balancing exercise,” he said. “We want to use data to power growth. We also want to protect rights and trust, but more of one means less of the other, which seems an undesirable trade-off. Can we find a way that growth sustains privacy and trust, or even creates a mutually reinforcing cycle?”

And Liz Brandt, CEO of Ctrl-Shift, talked about reconciling privacy and growth in her introductory session.

“Customers are becoming personal information factories,” she said. “That’s generating opportunities but also concerns. The personal information economy is economic growth driven by personal information, but customer data concerns are eroding trust and stifling the potential. We want to get to a place where trust is designed into services.”

Brandt highlighted one element of the personal information economy, personal information management services—services that help individuals gather and use information to make better decisions—a market, which Ctrl-Shift estimates could be worth £16.5 billion to the U.K. economy. Brandt listed three core information tasks that PIMS help realise: personal data management, decision support, and life management. But, again, she warned that consumers needed to trust potential service providers before this value could be realised.

“Customers are conflicted. They want the services, but they don’t want to give up their data,” she said. “Companies have to build trusted information-sharing relationships with their customers. You need to build metrics not about your company, but about your relationship with your customers.”

Information commissioner Denham also highlighted the issue of consumer concern.

“Only one in four U.K. adults trust businesses with their confidential information,” she said. And while she said a fundamental goal of her term as ICO was to build a culture of data confidence in the U.K, she called on business to lead the way.

Five Shifts Towards A New Paradigm For Personal Data

The future of the personal information economy will depend upon the creation of a flourishing and sustainable personal data ecosystem. A report commissioned by Facebook from Ctrl-Shift, “A New Paradigm For Personal Data,” outlines the five “shifts” that need to occur for this to happen.

1. From Education To Confidence

“Data is complicated and people need to be educated, but attention is limited,” Deadman said. “There needs to be a shift from education to familiarisation. It needs to be design-led, like the iPhone for example. You don’t have to teach people how to use it.”

2. From Partial To Full Value

Talking about the second shift—from partial to full value—Deadman stressed that this wasn’t just a matter of economic value, and argued that the value exchange between companies and individuals needed to be reframed.

“Personal data also helps to solve societal problems,” he said. “It empowers individuals to take more control of their lives.

And Ctrl-Shift’s client strategy director Jamie Smith, who oversaw the report, added that there was a widespread view among consumers that their data was being collected to drive shareholder value.

“We think this is a handbrake,” he said.

3. From Restrictive To Enabling

The third shift required is around regulation. Deadman pointed out that the E.U’s General Data Protection Regulation—which is due to come into effect on May 25, 2018—would set the new regime, but he also called for what he described as “smart regulation.”

“Regulation needs to encourage a positive focus, for example on empowerment,” he said.

4. From Compliance To Sustainable Customer Relationships

Deadman described the fourth shift—from compliance to sustainable customer relationships—as a shift from looking at processes to looking at outcomes.

“This is a move from people not just achieving compliance, but creating value,” he said.

5. From Good Intentions To Good Outcomes

The final shift—from good intentions to good outcomes—is seen by both Deadman and Ctrl-Shift as an innovation opportunity, but one that requires understanding from regulators.

“A lot more iteration and experimentation is required, and it means giving businesses space,” Deadman said.

Deadman also said the key insight from the report was that “the individual needs to be at the centre of the discussion.” This is because individual agency is a driver of growth.

“Individuals’ control of their data creates value. That motivates businesses, and it’s too big a signal to ignore.”